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Under a Pure Flexible Exchange Rate System,what Does the Rate

Question 59

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Under a pure flexible exchange rate system,what does the rate that equates demand and supply in the exchange rate market imply?


A) The capital account balance equals zero.
B) Merchandise exports equals merchandise imports.
C) The current and capital account balances will be equal in magnitude, but opposite in sign.
D) The current account balance equals zero.

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